EQT Midstream Partners, LP

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

EQT Midstream Partners, LP

EQT GP Holdings, LP

In January 2015, the Company formed EQGP to own the Company's partnership interests in EQM. EQGP issued an additional 36,293,766 common units to Rice Midstream GP Holdings in the RMP IDR Purchase, which increased EQT's limited partner interest in EQGP. As of June 30, 2018, EQT owns 276,008,766 EQGP common units, which represent a 91.3% limited partner interest, and the entire non-economic general partner interest in EQGP. EQGP owned the following EQM partnership interests as of June 30, 2018, which represent EQGP’s only cash-generating assets: 21,811,643 EQM common units, representing a 24.8% limited partner interest in EQM; 1,443,015 EQM general partner units, representing a 1.6% general partner interest in EQM; and all of EQM’s IDRs, which entitle EQGP to receive up to 48.0% of all incremental cash distributed in a quarter after $0.5250 has been distributed in respect of each common unit and general partner unit of EQM for that quarter. Through EQGP's general partner interest, limited partner interest and IDRs in EQM, EQGP has a controlling financial interest in EQM; therefore, EQGP consolidates EQM. The Company is the ultimate parent company of EQGP and EQM.

On July 24, 2018, the Board of Directors of EQGP's general partner declared a cash distribution to EQGP’s unitholders for the second quarter of 2018 of $0.306 per common unit, or approximately $92.6 million. The distribution will be paid on August 23, 2018 to unitholders of record, including the Company, at the close of business on August 3, 2018. Based on the EQGP common units outstanding on July 26, 2018, the cash distributions by EQGP to EQT for the second quarter 2018 will be approximately $84.5 million.

EQT Midstream Partners, LP

In January 2012, the Company formed EQM to own, operate, acquire and develop midstream assets in the Appalachian Basin. EQM provides midstream services to the Company and third parties. EQM is consolidated in the Company’s financial statements. The Company records the noncontrolling interest of the EQM public limited partners in its financial statements.

As a result of the Drop-Down Transaction, in addition to the EQM common units owned by EQGP, as of June 30, 2018, EQT owned 5,889,282 EQM common units representing an additional 6.7% limited partner interest in EQM.

On July 24, 2018, the Board of Directors of EQM's general partner declared a cash distribution to EQM’s unitholders for the second quarter of 2018 of $1.09 per common unit. The cash distribution will be paid on August 14, 2018 to unitholders of record, including EQGP, at the close of business on August 3, 2018. Based on the EQM common units outstanding on July 26, 2018, the cash distributions by EQM to EQGP for the second quarter 2018 will be approximately $94.3 million consisting of: $23.8 million in respect of its limited partner interest, $2.4 million in respect of its general partner interest and $68.1 million in respect of its IDRs. The distribution amounts to EQGP related to its general partner interest and IDRs in EQM are subject to change if EQM issues additional common units on or prior to the record date for the second quarter 2018 distribution. Based on the EQM common units outstanding on July 26, 2018, the cash distributions by EQM to EQT for the second quarter 2018 will be approximately $16.8 million.